Should we buy a new build home without involving our realtor?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
katnok
Posts: 179
Joined: Fri Nov 11, 2011 8:36 pm

Should we buy a new build home without involving our realtor?

Post by katnok »

We are in the market for a house in the East Valley of Phoenix metro area. Prior to finding our realtor, we checked out a new build community in a desirable area when I gave my contact info. My wife was not so impressed, so we left it at that. We hired a realtor shortly after (btw, there's no written contract between us) and have been actively looking since. Yesterday, I received an email from the builder's sales agent that there is a house under construction, whose buyer has backed out due to job loss. We figured that she emailed us (out of many that would like to buy a house in that community) because we didn't indicate that we were working with a realtor when we first checked out their model homes a few months ago. So, we went back without our realtor to learn more about the home under construction and felt that we wouldn't unhappy with this purchase. At the end, I asked the builder's agent if they could share buyer's agent's commission and the answer was a no.

My questions are:
1. How important is a buyer's agent for a new build?
2. As I mentioned above, we don't have a written contract between us and our realtor (that's how this realtor operates) and also we have not been pleased with them, so we are not sure if we even need to let them know that about this transaction, if we want to move forward.

Thank you.
Last edited by katnok on Sun Apr 18, 2021 10:21 am, edited 1 time in total.
Nyc10036
Posts: 691
Joined: Wed Oct 05, 2016 6:29 pm

Re: Should we buy a new build home without involving our realtor?

Post by Nyc10036 »

katnok wrote: Sun Apr 18, 2021 9:35 am At the end, I asked the realtor if they could share buyer's agent's commission and the answer was a no.
I am confused. Your realtor does not want to share buyer's agent's commission? Share with whom?
Firemenot
Posts: 582
Joined: Wed Apr 01, 2020 8:48 pm

Re: Should we buy a new build home without involving our realtor?

Post by Firemenot »

New developments usually won’t deal with a buy-side realtor anyhow. They aren’t going to pay them.
Topic Author
katnok
Posts: 179
Joined: Fri Nov 11, 2011 8:36 pm

Re: Should we buy a new build home without involving our realtor?

Post by katnok »

Nyc10036 wrote: Sun Apr 18, 2021 10:11 am
katnok wrote: Sun Apr 18, 2021 9:35 am At the end, I asked the realtor if they could share buyer's agent's commission and the answer was a no.
I am confused. Your realtor does not want to share buyer's agent's commission? Share with whom?
Sorry. I meant the builder's agent.
Big Dog
Posts: 2531
Joined: Mon Sep 07, 2015 4:12 pm

Re: Should we buy a new build home without involving our realtor?

Post by Big Dog »

Firemenot wrote: Sun Apr 18, 2021 10:16 am New developments usually won’t deal with a buy-side realtor anyhow. They aren’t going to pay them.
Depends on the stage. Towards the end of the lifecycle of the development, builders out here are happy to pay a commission to unload the last xx properties.


OP: if you don't like the realtor that you have been working with, why would you even consider getting them involved? That said, some RE agents are in it for the long-haul and so might assist you on the side (if builder refuses to pay a commission), on the hopes that you will give them first dibs when you do decide to sell.
Nyc10036
Posts: 691
Joined: Wed Oct 05, 2016 6:29 pm

Re: Should we buy a new build home without involving our realtor?

Post by Nyc10036 »

Big Dog wrote: Sun Apr 18, 2021 10:22 am
OP: if you don't like the realtor that you have been working with, why would you even consider getting them involved?
He did not write that.


OP,
Technically you found this house first because it was prior to your contact with your realtor.

The builder's agent probably isn't going to budge in this red hot market.

.
PaunchyPirate
Posts: 465
Joined: Sun Nov 30, 2014 7:58 pm

Re: Should we buy a new build home without involving our realtor?

Post by PaunchyPirate »

I purchased an existing model home directly from the builder. I already had signed with a buyer's agent. In my case, the builder was willing to pay the buyer's agent share since the house had been on the market for some time.

However, my buyer's agent didn't really contribute much to the transaction. The builder would not let us use the standard sales agreement -- they had their own they forced me to use if I wanted the house. It had more protections to the builder than the buyer, but it was acceptable to me. I was permitted to hire an inspector and my agent helped me locate one since I was new to the area. The agent also helped me find a local mortgage company, but I could have done that on my own and/or I'm sure the builder had a list I could work with. The settlement was done by a company affiliated with the builder.

You can certainly do it without an agent. Just be familiar with what you would normally do to buy a house and ask for those same things from the builder.
Topic Author
katnok
Posts: 179
Joined: Fri Nov 11, 2011 8:36 pm

Re: Should we buy a new build home without involving our realtor?

Post by katnok »

Thank you for the replies.
Our main concern is if we would end up with a bad deal without involving our realtor. We don't have prior experience with this, so not sure what to look for while the house is under construction, contract with the builder etc.
Firemenot
Posts: 582
Joined: Wed Apr 01, 2020 8:48 pm

Re: Should we buy a new build home without involving our realtor?

Post by Firemenot »

katnok wrote: Sun Apr 18, 2021 10:35 am Thank you for the replies.
Our main concern is if we would end up with a bad deal without involving our realtor. We don't have prior experience with this, so not sure what to look for while the house is under construction, contract with the builder etc.
Realtor isn’t going to know that stuff. A practical real estate attorney would be better.
stan1
Posts: 10028
Joined: Mon Oct 08, 2007 4:35 pm

Re: Should we buy a new build home without involving our realtor?

Post by stan1 »

katnok wrote: Sun Apr 18, 2021 10:35 am Thank you for the replies.
Our main concern is if we would end up with a bad deal without involving our realtor. We don't have prior experience with this, so not sure what to look for while the house is under construction, contract with the builder etc.
Is this with a national builder such as Toll Brothers, Shea, etc? Bringing a realtor into a deal with them in my experience does nothing. Especially in a very strong sellers market a national builder is not going to negotiate special deals with any individual customers. A national builder is also not going to draft up a special sales contract just for you. Sure you can pay an attorney to review the contract and explain it to you, but the builder is not going to change their contract because your attorney raises something that is to the builder's advantage. I'd consider hiring a home inspector even though it is new construction with a warranty.

I think you may be mistaken that the builder's sales agent singled you out for the email about the home under construction coming on the market. I expect she sent that email to hundreds if not thousands of people who have visited the sales center. Builders use contact management software that makes an email look very personal but in fact its an email blast to many people. I suspect quite a few people sign in at a model home tour with a fake email address because they don't want to stay in touch with the builder.
Topic Author
katnok
Posts: 179
Joined: Fri Nov 11, 2011 8:36 pm

Re: Should we buy a new build home without involving our realtor?

Post by katnok »

stan1 wrote: Sun Apr 18, 2021 10:47 am
katnok wrote: Sun Apr 18, 2021 10:35 am Thank you for the replies.
Our main concern is if we would end up with a bad deal without involving our realtor. We don't have prior experience with this, so not sure what to look for while the house is under construction, contract with the builder etc.
Is this with a national builder such as Toll Brothers, Shea, etc? Bringing a realtor into a deal with them in my experience does nothing. Especially in a very strong sellers market a national builder is not going to negotiate special deals with any individual customers. A national builder is also not going to draft up a special sales contract just for you. Sure you can pay an attorney to review the contract and explain it to you, but the builder is not going to change their contract because your attorney raises something that is to the builder's advantage. I'd consider hiring a home inspector even though it is new construction with a warranty.

I think you may be mistaken that the builder's sales agent singled you out for the email about the home under construction coming on the market. I expect she sent that email to hundreds if not thousands of people who have visited the sales center. Builders use contact management software that makes an email look very personal but in fact its an email blast to many people. I suspect quite a few people sign in at a model home tour with a fake email address because they don't want to stay in touch with the builder.
This is helpful. Thank you.
The builder is local (Blandford Homes).
When I said the builder's agent singled us out, I meant that they reached out to us first due to the fact that we weren't working with a realtor at the time I provided my contact info, which would same them the money they would have to pay to the buyer's agent. In fact, the agent kind of acknowledged it at the end.
PaunchyPirate
Posts: 465
Joined: Sun Nov 30, 2014 7:58 pm

Re: Should we buy a new build home without involving our realtor?

Post by PaunchyPirate »

katnok wrote: Sun Apr 18, 2021 10:35 am Thank you for the replies.
Our main concern is if we would end up with a bad deal without involving our realtor. We don't have prior experience with this, so not sure what to look for while the house is under construction, contract with the builder etc.
Buying a house from a builder is something you'll have to just decide if you have the stomach for it or not. They largely control everything. Your best bet is to do research on the builder. Drive around and see if you can track down owners of houses they built to talk to. Review social media. Etc. If they are a reputable builder and you like the houses they have built, you're probably going to be fine to just go with them. Get it inspected. If you're getting a mortgage, the mortgage company will do an appraisal. So you'll have some idea of value at that time, but it may be too late to get out of the deal at that point unless the purchase price is more than the appraisal. This is one reason you might wish to pick an independent mortgage company and not one owned by the builder or an affiliate.

Whether you're getting a good deal or not is really all about looking at what comparable homes are actually selling for. Use online tools to help with that.

You're likely to get a one-year period where they will fix any deficiencies that appear in the house after purchase. But there will be things in their contract that specifically says they aren't responsible for. Even though I bought a 4 year old model home, the builder still gave me the one-year "warranty" period. I had them come in several times to fix things that I didn't notice until after closing.
User avatar
willthrill81
Posts: 24584
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: Should we buy a new build home without involving our realtor?

Post by willthrill81 »

Firemenot wrote: Sun Apr 18, 2021 10:16 am New developments usually won’t deal with a buy-side realtor anyhow. They aren’t going to pay them.
Ours certainly would have. They wanted to know specifically if we had a buyer's agent, which we didn't, when we bought our current home because they would have paid said person if needed.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
Firemenot
Posts: 582
Joined: Wed Apr 01, 2020 8:48 pm

Re: Should we buy a new build home without involving our realtor?

Post by Firemenot »

willthrill81 wrote: Sun Apr 18, 2021 1:27 pm
Firemenot wrote: Sun Apr 18, 2021 10:16 am New developments usually won’t deal with a buy-side realtor anyhow. They aren’t going to pay them.
Ours certainly would have. They wanted to know specifically if we had a buyer's agent, which we didn't, when we bought our current home because they would have paid said person if needed.
I stand corrected then. It will surely hurt them though on the price they’re able to negotiate. Especially in a hot buyers market. I personally would never use a buy-side realtor with a developer.
User avatar
willthrill81
Posts: 24584
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: Should we buy a new build home without involving our realtor?

Post by willthrill81 »

Firemenot wrote: Sun Apr 18, 2021 1:46 pm
willthrill81 wrote: Sun Apr 18, 2021 1:27 pm
Firemenot wrote: Sun Apr 18, 2021 10:16 am New developments usually won’t deal with a buy-side realtor anyhow. They aren’t going to pay them.
Ours certainly would have. They wanted to know specifically if we had a buyer's agent, which we didn't, when we bought our current home because they would have paid said person if needed.
I stand corrected then. It will surely hurt them though on the price they’re able to negotiate. Especially in a hot buyers market. I personally would never use a buy-side realtor with a developer.
When we bought our home, there was no negotiation in terms of price, mostly because it was in a development, and the builder wants prices to be kept as high as possible for the purposes of comps. Sometimes, the negotiation isn't in terms of price but in terms of certain upgrades or features. Now, that developer no longer has any fixed prices on new homes; everything is done by bid because the market is so hot (and has been for years now) that the builder can make far more by doing so.

We had a buyer's agent with our first home, but she really wasn't necessary at all. We could have found all of the homes she showed us online and requested tours as easily as she did. I see more value in having a seller's agent, but even then, we sold our prior home FSBO, and it was easy, painless, and left more money in our pocket. I think that real estate agents are about to go down a similar path that travel agents have already trod.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
Firemenot
Posts: 582
Joined: Wed Apr 01, 2020 8:48 pm

Re: Should we buy a new build home without involving our realtor?

Post by Firemenot »

willthrill81 wrote: Sun Apr 18, 2021 2:01 pm
Firemenot wrote: Sun Apr 18, 2021 1:46 pm
willthrill81 wrote: Sun Apr 18, 2021 1:27 pm
Firemenot wrote: Sun Apr 18, 2021 10:16 am New developments usually won’t deal with a buy-side realtor anyhow. They aren’t going to pay them.
Ours certainly would have. They wanted to know specifically if we had a buyer's agent, which we didn't, when we bought our current home because they would have paid said person if needed.
I stand corrected then. It will surely hurt them though on the price they’re able to negotiate. Especially in a hot buyers market. I personally would never use a buy-side realtor with a developer.
When we bought our home, there was no negotiation in terms of price, mostly because it was in a development, and the builder wants prices to be kept as high as possible for the purposes of comps. Sometimes, the negotiation isn't in terms of price but in terms of certain upgrades or features. Now, that developer no longer has any fixed prices on new homes; everything is done by bid because the market is so hot (and has been for years now) that the builder can make far more by doing so.

We had a buyer's agent with our first home, but she really wasn't necessary at all. We could have found all of the homes she showed us online and requested tours as easily as she did. I see more value in having a seller's agent, but even then, we sold our prior home FSBO, and it was easy, painless, and left more money in our pocket.
Only reason I have my current house is because I made my offer directly through the seller’s agent in a multiple bidder scenario. Shocker, I won the house over the other buyers that all had buy-side agents! I’m so rooting for fin-tech to disrupt the stranglehold that the realtor cartels have on things before I sell someday. I’d have to pay realtors over 100K in commissions on my current house, which is just insane.
Beachey
Posts: 100
Joined: Wed Sep 02, 2020 9:54 am

Re: Should we buy a new build home without involving our realtor?

Post by Beachey »

Firemenot wrote: Sun Apr 18, 2021 10:36 am
katnok wrote: Sun Apr 18, 2021 10:35 am Thank you for the replies.
Our main concern is if we would end up with a bad deal without involving our realtor. We don't have prior experience with this, so not sure what to look for while the house is under construction, contract with the builder etc.
Realtor isn’t going to know that stuff. A practical real estate attorney would be better.
I no longer live in Arizona but one of the unique aspects (at least to me) is you typically don't have a lawyer in Arizona. There are standard real estate contracts that are different than many states where usually in my experience the seller's lawyer writes the contract. The choice of the closing agent becomes more important because of that. The question becomes who is looking out for your interests. The first house I bought in Arizona I considered a lawyer but ended up trusting my buyer's agent who was very experienced.

So if you don't have a buyer's agent you may need to hire a lawyer though I am not sure how many are out there who do a lot of residential real estate since as I said there isn't a market for it.
bankrobber
Posts: 1
Joined: Sat May 23, 2020 10:02 pm

Re: Should we buy a new build home without involving our realtor?

Post by bankrobber »

I work for a large home builder in the SW. In addition, my wife sold new homes for over 20+ years. IMO, unless there are special circumstances, like you live out of state or you don't speak or understand English well, you do not need an agent when buying a new home from a tract builder. You will use the builder's contract and you will not be able to change or modify it at all. The builder's agent should be able to answer any and all relevant questions concerning the home and community.

As I believe you are already aware, in this case, you wouldn't be able to use an agent and have them receive a commission, since most builders will only pay a broker commission if your agent accompanies you on your first visit to the community.

If you like the home and the builder has a good reputation, I think you should feel comfortable moving forward without an agent.
rascott
Posts: 2570
Joined: Wed Apr 15, 2015 10:53 am

Re: Should we buy a new build home without involving our realtor?

Post by rascott »

Firemenot wrote: Sun Apr 18, 2021 10:16 am New developments usually won’t deal with a buy-side realtor anyhow. They aren’t going to pay them.

Must vary by area. All builders here are happy to work with buyer's agents. They build in 6% sales commissions.... and they either give it all to their in house sales person or split it.
rascott
Posts: 2570
Joined: Wed Apr 15, 2015 10:53 am

Re: Should we buy a new build home without involving our realtor?

Post by rascott »

willthrill81 wrote: Sun Apr 18, 2021 2:01 pm
Firemenot wrote: Sun Apr 18, 2021 1:46 pm
willthrill81 wrote: Sun Apr 18, 2021 1:27 pm
Firemenot wrote: Sun Apr 18, 2021 10:16 am New developments usually won’t deal with a buy-side realtor anyhow. They aren’t going to pay them.
Ours certainly would have. They wanted to know specifically if we had a buyer's agent, which we didn't, when we bought our current home because they would have paid said person if needed.
I stand corrected then. It will surely hurt them though on the price they’re able to negotiate. Especially in a hot buyers market. I personally would never use a buy-side realtor with a developer.
When we bought our home, there was no negotiation in terms of price, mostly because it was in a development, and the builder wants prices to be kept as high as possible for the purposes of comps. Sometimes, the negotiation isn't in terms of price but in terms of certain upgrades or features. Now, that developer no longer has any fixed prices on new homes; everything is done by bid because the market is so hot (and has been for years now) that the builder can make far more by doing so.

We had a buyer's agent with our first home, but she really wasn't necessary at all. We could have found all of the homes she showed us online and requested tours as easily as she did. I see more value in having a seller's agent, but even then, we sold our prior home FSBO, and it was easy, painless, and left more money in our pocket. I think that real estate agents are about to go down a similar path that travel agents have already trod.

Very unlikely as the Realtors own and operate the MLS. And most people will continue to use a Realtor to list a home... in a hot market doing FSBO just by tossing a listing on Zillow can work well however. But again, I think a lot of people are uneasy doing that. There are always things that come up in transactions.... most often in inspection stages.... which can be a lot more difficult negotiation than original price negotiation
User avatar
willthrill81
Posts: 24584
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: Should we buy a new build home without involving our realtor?

Post by willthrill81 »

rascott wrote: Mon Apr 19, 2021 7:36 am
willthrill81 wrote: Sun Apr 18, 2021 2:01 pm
Firemenot wrote: Sun Apr 18, 2021 1:46 pm
willthrill81 wrote: Sun Apr 18, 2021 1:27 pm
Firemenot wrote: Sun Apr 18, 2021 10:16 am New developments usually won’t deal with a buy-side realtor anyhow. They aren’t going to pay them.
Ours certainly would have. They wanted to know specifically if we had a buyer's agent, which we didn't, when we bought our current home because they would have paid said person if needed.
I stand corrected then. It will surely hurt them though on the price they’re able to negotiate. Especially in a hot buyers market. I personally would never use a buy-side realtor with a developer.
When we bought our home, there was no negotiation in terms of price, mostly because it was in a development, and the builder wants prices to be kept as high as possible for the purposes of comps. Sometimes, the negotiation isn't in terms of price but in terms of certain upgrades or features. Now, that developer no longer has any fixed prices on new homes; everything is done by bid because the market is so hot (and has been for years now) that the builder can make far more by doing so.

We had a buyer's agent with our first home, but she really wasn't necessary at all. We could have found all of the homes she showed us online and requested tours as easily as she did. I see more value in having a seller's agent, but even then, we sold our prior home FSBO, and it was easy, painless, and left more money in our pocket. I think that real estate agents are about to go down a similar path that travel agents have already trod.

Very unlikely as the Realtors own and operate the MLS. And most people will continue to use a Realtor to list a home... in a hot market doing FSBO just by tossing a listing on Zillow can work well however. But again, I think a lot of people are uneasy doing that. There are always things that come up in transactions.... most often in inspection stages.... which can be a lot more difficult negotiation than original price negotiation
Banking nearly everything on a listing platform is a recipe for disaster for the real estate agents. People can already find homes on alternative platforms. Heck, people were selling homes on Craigslist eight years ago.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
rascott
Posts: 2570
Joined: Wed Apr 15, 2015 10:53 am

Re: Should we buy a new build home without involving our realtor?

Post by rascott »

willthrill81 wrote: Mon Apr 19, 2021 9:23 am
rascott wrote: Mon Apr 19, 2021 7:36 am
willthrill81 wrote: Sun Apr 18, 2021 2:01 pm
Firemenot wrote: Sun Apr 18, 2021 1:46 pm
willthrill81 wrote: Sun Apr 18, 2021 1:27 pm

Ours certainly would have. They wanted to know specifically if we had a buyer's agent, which we didn't, when we bought our current home because they would have paid said person if needed.
I stand corrected then. It will surely hurt them though on the price they’re able to negotiate. Especially in a hot buyers market. I personally would never use a buy-side realtor with a developer.
When we bought our home, there was no negotiation in terms of price, mostly because it was in a development, and the builder wants prices to be kept as high as possible for the purposes of comps. Sometimes, the negotiation isn't in terms of price but in terms of certain upgrades or features. Now, that developer no longer has any fixed prices on new homes; everything is done by bid because the market is so hot (and has been for years now) that the builder can make far more by doing so.

We had a buyer's agent with our first home, but she really wasn't necessary at all. We could have found all of the homes she showed us online and requested tours as easily as she did. I see more value in having a seller's agent, but even then, we sold our prior home FSBO, and it was easy, painless, and left more money in our pocket. I think that real estate agents are about to go down a similar path that travel agents have already trod.

Very unlikely as the Realtors own and operate the MLS. And most people will continue to use a Realtor to list a home... in a hot market doing FSBO just by tossing a listing on Zillow can work well however. But again, I think a lot of people are uneasy doing that. There are always things that come up in transactions.... most often in inspection stages.... which can be a lot more difficult negotiation than original price negotiation
Banking nearly everything on a listing platform is a recipe for disaster for the real estate agents. People can already find homes on alternative platforms. Heck, people were selling homes on Craigslist eight years ago.
Well you can buy and sell used cars on Craigslist (or other sites too). Doesn't mean that most people use that method. I'm just saying that most people only buy/ sell homes a few times ever in their lives and the vast majority aren't going to be comfortable doing it on their own. As such, they'll continue to use Realtors for the foreseeable future.

Only about 8% of homes are sold FSBO.....a number that hasn't changed much in decades. Some 90% of buyers use a buyer's agent now (up from 70% twenty years ago)

The death of the Realtor is greatly exaggerated.
User avatar
willthrill81
Posts: 24584
Joined: Thu Jan 26, 2017 3:17 pm
Location: USA

Re: Should we buy a new build home without involving our realtor?

Post by willthrill81 »

rascott wrote: Mon Apr 19, 2021 9:52 am
willthrill81 wrote: Mon Apr 19, 2021 9:23 am
rascott wrote: Mon Apr 19, 2021 7:36 am
willthrill81 wrote: Sun Apr 18, 2021 2:01 pm
Firemenot wrote: Sun Apr 18, 2021 1:46 pm

I stand corrected then. It will surely hurt them though on the price they’re able to negotiate. Especially in a hot buyers market. I personally would never use a buy-side realtor with a developer.
When we bought our home, there was no negotiation in terms of price, mostly because it was in a development, and the builder wants prices to be kept as high as possible for the purposes of comps. Sometimes, the negotiation isn't in terms of price but in terms of certain upgrades or features. Now, that developer no longer has any fixed prices on new homes; everything is done by bid because the market is so hot (and has been for years now) that the builder can make far more by doing so.

We had a buyer's agent with our first home, but she really wasn't necessary at all. We could have found all of the homes she showed us online and requested tours as easily as she did. I see more value in having a seller's agent, but even then, we sold our prior home FSBO, and it was easy, painless, and left more money in our pocket. I think that real estate agents are about to go down a similar path that travel agents have already trod.

Very unlikely as the Realtors own and operate the MLS. And most people will continue to use a Realtor to list a home... in a hot market doing FSBO just by tossing a listing on Zillow can work well however. But again, I think a lot of people are uneasy doing that. There are always things that come up in transactions.... most often in inspection stages.... which can be a lot more difficult negotiation than original price negotiation
Banking nearly everything on a listing platform is a recipe for disaster for the real estate agents. People can already find homes on alternative platforms. Heck, people were selling homes on Craigslist eight years ago.
Well you can buy and sell used cars on Craigslist (or other sites too). Doesn't mean that most people use that method. I'm just saying that most people only buy/ sell homes a few times ever in their lives and the vast majority aren't going to be comfortable doing it on their own. As such, they'll continue to use Realtors for the foreseeable future.

Only about 8% of homes are sold FSBO.....a number that hasn't changed much in decades. Some 90% of buyers use a buyer's agent now (up from 70% twenty years ago)

The death of the Realtor is greatly exaggerated.
Thing stay the same until they don't. This industry seems ripe for dynamic change to me, but maybe I'm completely wrong.
“Good and ill have not changed since yesteryear; nor are they one thing among Elves and Dwarves and another among Men.” J.R.R. Tolkien, The Lord of the Rings
mnsportsgeek
Posts: 384
Joined: Mon Jan 19, 2015 1:39 pm

Re: Should we buy a new build home without involving our realtor?

Post by mnsportsgeek »

Firemenot wrote: Sun Apr 18, 2021 10:16 am New developments usually won’t deal with a buy-side realtor anyhow. They aren’t going to pay them.
Depends on the builder. Most of the big builders will work with buyer's agents now at least in my area.
TropikThunder
Posts: 2823
Joined: Sun Apr 03, 2016 5:41 pm

Re: Should we buy a new build home without involving our realtor?

Post by TropikThunder »

Firemenot wrote: Sun Apr 18, 2021 10:16 am New developments usually won’t deal with a buy-side realtor anyhow. They aren’t going to pay them.
Sure they will. The difference is, builders are better at getting sign-ins and stricter at enforcing the rule that if your first visit is not with it an agent, you can’t bring one in later. New construction gets much much more traffic at build sites, open houses, and model homes, especially people who aren’t necessarily ready to buy (which is a good thing considering the months-long construction timelines). If you’re not looking to close for eight months, you’re much more likely to visit without an agent and therefore can’t add one later. If you start the process with an agent, they’ll pay them same as anyone else will.
User avatar
gwe67
Posts: 758
Joined: Mon Dec 23, 2013 9:52 pm

Re: Should we buy a new build home without involving our realtor?

Post by gwe67 »

I used a realtor when buying a new home, but there may not be much benefit added. However...

Get a home inspection! Don't assume that everything works just because it is a new home. A good inspector may find deficiencies that you cannot.
VTI 48%, VXUS 12%, BND 40%
User avatar
CardinalRule
Posts: 658
Joined: Sun Jan 15, 2017 11:01 am
Location: United States

Re: Should we buy a new build home without involving our realtor?

Post by CardinalRule »

rascott wrote: Mon Apr 19, 2021 7:33 am
Firemenot wrote: Sun Apr 18, 2021 10:16 am New developments usually won’t deal with a buy-side realtor anyhow. They aren’t going to pay them.
Must vary by area. All builders here are happy to work with buyer's agents. They build in 6% sales commissions.... and they either give it all to their in house sales person or split it.
That is very true of the states I am familiar with also. We recently bought new construction in Arizona from a big national builder. We did a ton of internet due diligence (we did all this remotely) but we were happy to engage a realtor at the end. It was an easy commission for the realtor, and she knew the builder well, but it had zero impact on our purchase price and it was at least a little comforting to have someone “on the ground” to act on our behalf and provide some local insight and advice while we were far away...

Standard contract in Arizona, as someone else noted.
NabSh
Posts: 130
Joined: Fri Dec 25, 2020 12:09 pm

Re: Should we buy a new build home without involving our realtor?

Post by NabSh »

I think all builders allow buyer agent commission. If this home was already under contract, it may mean commission have been allocated ( not necessarily paid). Several of my friends bought seven figure homes from Toll Brothers. In this case they added a realtor. The realtor gave them 1.5% commission back. So it was not from the builder but through an agent.
You can search online there are realtors who will give you cash back.
Post Reply